Steve McClaren has signed a 12-month extension to his contract at FC Twente which ties him to the Eredivisie leaders until 2011.
McClaren opted to move to Holland to rebuild his career after a torrid spell in charge of England which culminated in the team's failure to reach the finals of Euro 2008.
And he has been a resounding success. His side finished second last season to AZ Alkmaar and currently lead the way this term, two points clear of PSV Eindhoven.
McClaren said: "FC Twente is an ambitious club as we have shown this season. It is a pleasure to work here alongside a management team and a group of players that want to achieve something. I am very pleased with this new deal."
Twente chairman Joop Munsterman added: "It goes without saying that FC Twente is delighted Steve has decided to extend his contract. Both parties are very keen for the technical policy of the club to be continued.
"Steve McClaren is ambitious, FC Twente are ambitious so it fits."